Speaking in Ankara, Yildiz said: "Oil flow goes on now but in the upcoming period whether these will be interrupted or not is not foreseeable".

Yildiz added that "jeopardy" would continue in Iraq until the country attained stability.

Islamic State of Iraq and the Levant rebels attacked the Turkish consulate in the northern city of Mosul last week and took 49 Turkish citizens hostage.

Yildiz said that the government would follow all developments in Mosul and Kirkuk closely.

"We have no workers in the danger zones of Iraq," Yildiz added, saying that the majority of personnel from Turkey's state-owned oil and gas exploration company TPAO were continuing to operate in the region.

"It is obvious that the oil prices in the world will increase and we will try to compensate domestically in the country," said Yildiz.

The minister added that northern Iraqi oil, stored in Turkey's Ceyhan Port, would be dispatched to the international market on 22 June but said "we do not deal where the oil will be sent" adding that Turkey has responsibility only for delivery.

Northern Iraq oil was exported from Ceyhan Port to international markets on 22 May, prompting Baghdad to appeal for international arbitration against Ankara, demanding an immediate halt to sales and warning oil companies not to purchase the oil.